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Basic Business Statistics, 11e ? 2009 Prentice-Hall, Inc.. Chap 7-* Determining An Interval Including A Fixed Proportion of the Sample Means Calculating the lower limit of the interval Calculating the upper limit of the interval 95% of all sample means of sample size 25 are between 362.12 and 373.88 (continued) Basic Business Statistics, 11e ? 2009 Prentice-Hall, Inc.. Chap 7-* Sample Mean Sampling Distribution:If the Population is not Normal We can apply the Central Limit Theorem: Even if the population is not normal, …sample means from the population will be approximately normal as long as the sample size is large enough. Properties of the sampling distribution: and Basic Business Statistics, 11e ? 2009 Prentice-Hall, Inc.. Chap 7-* n↑ Central Limit Theorem As the sample size gets large enough… the sampling distribution becomes almost normal regardless of shape of population Basic Business Statistics, 11e ? 2009 Prentice-Hall, Inc.. Chap 7-* Population Distribution Sampling Distribution (becomes normal as n increases) Central Tendency Variation Larger sample size Smaller sample size Sample Mean Sampling Distribution:If the Population is not Normal (continued) Sampling distribution properties: Basic Business Statistics, 11e ? 2009 Prentice-Hall, Inc.. Chap 7-* How Large is Large Enough? For most distributions, n 30 will give a sampling distribution that is nearly normal For fairly symmetric distributions, n 15 will usually give a sampling distribution is almost normal For normal population distributions, the sampling distribution of the mean is always normally distributed Basic Business Statistics, 11e ? 2009 Prentice-Hall, Inc.. Chap 7-* Example Suppose a population has mean μ = 8 and standard deviation σ = 3. Suppose a random sample of size n = 36 is selected. What is the probability that the sample mean is between 7.8 and 8.2? Basic Business Statistics, 11e ? 2009 Prentice-Hall, Inc.. Chap 7-* Example Solution: Ev
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